BMS Auditing offers expert withholding tax filing services in Saudi Arabia, helping businesses comply with ZATCA regulations, file returns on time, and avoid penalties.
Businesses, particularly foreign companies and investors, find it difficult to deal with the intricacies of Saudi Arabia's withholding tax (WHT) rules. Here at BMS Auditing, we offer you the best withholding tax services that guarantee your company is in perfect compliance with the tax regulations of the Kingdom. Whether you're a resident taxpayer paying non-resident service providers, or require assistance with making payments and filing returns, our professional team is here to ease the process. With our extensive understanding of Saudi tax laws, we will ensure that you're on top of your WHT obligations, filing and paying in a timely manner and avoiding penalties. Leave the complexity of withholding tax to us so that you can concentrate on business development.
What is Withholding Tax (WHT) in Saudi Arabia?
Withholding tax is the amount of tax collected from non-residents when their services are performed in Saudi Arabia. The Saudi tax system operates under the destination-based principle; this is where every income obtained in the Kingdom will be subjected to taxation irrespective of whether it was a non-resident who earned the money or not. Tax rate will be subject to the nature of payment and service offered.
- Dividends: 5%
- Interest/Loan Fees: 5%
- Royalties: 15%
- Management Fees: 20%
- and Consulting Services: 5%
As a resident entity, you are responsible for withholding and remitting the tax to the Zakat, Tax, and Customs Authority (ZATCA) and filing monthly and annual returns in compliance with the deadlines.
Withholding Tax Filing with BMS Auditing
BMS Auditing is a professional auditing firm that specializes in helping companies file their withholding tax returns efficiently and avoid heavy penalties. This process includes:
- Monthly Returns: Such returns are filed within 10 days from the end of the month in which the payment is made to a non-resident.
- Annual Returns: The annual return is submitted within 120 days from the fiscal year-end. For a partnership, it is submitted within 60 days from the fiscal year-end.
BMS Auditing will support you in getting into the ZATCA portal, preparing all returns required and ensuring that the information is complete. We guarantee your filings to meet the tax law of Saudi and avoid penalty on late submissions as well as mistakes in reports.
Procedure of Withholding Tax Payment
- Remittance: Withholding tax, after proper deduction, has to be remitted to ZATCA by 10th of the subsequent month. We shall assist you with the remittance process.
- Method of Payment: You pay this tax to ZATCA in the following ways: SADAD, Mada or direct bank transfer.
- Compliance Evidence: BMS Auditing will collect the proofs from the authority once you have made the payment, such as receipts, tax returns, and invoices.
Consequences of Non-Compliance
If a person fails to comply with the WHT regulations, several penalties apply. Among them are:
- Late Payment Penalty: This is 1% of the unpaid tax for every 30 days since its due date.
- Misreporting Penalty: A fine of 25% of unpaid tax if false information or tax evasion is identified.
- Additional Consequences: Legal actions, ineligibility to claim benefits under tax treaties, and audit risks.
Why Choose BMS Auditing?
- Expert guidance: Tax professionals will be designed to guide you through all the withholding tax intricate and complicated issues.
- On-time filing & payments: I make sure you file your returns on time with no penalties paid due to payments.
- Tailor-made services: be your management fees, royalties or technical services-our services are tailor-made, geared to all your tax needs.
- Compliance Assurance: Through BMS Auditing, you are assured that you are well compliant with the Saudi Arabia tax law in a way that your risk of penalty is reduced.
Contact BMS Auditing
If you want help with filing withholding tax returns, making the payments, or keeping your business compliant with the Saudi tax authorities, BMS Auditing will be glad to assist you. Reach out today for professional expertise on all issues related to withholding tax in Saudi Arabia.
